The Stephens Group Acquires Pearlman Enterprises, Inc.

The Stephens Group, LLC announced today that it finalized its
acquisition of Pearlman Enterprises, Inc. (“Pearlman” or the “Company”),
the parent company of GranQuartz and Pearl Abrasive. Terms of the
transaction were not disclosed.

Pearlman, headquartered in Norcross, GA, is a multi-channel developer
and distributor of supplies, tools, and equipment used in the
fabrication and maintenance of hard surfaces for residential,
commercial, and industrial end-markets. Pearlman’s GranQuartz division
is the market leading distributor serving over 8,000 stone fabricators,
tile installers and concrete and monument professionals across the U.S.
Pearl Abrasive is a leading developer and provider of high quality,
branded abrasives and cutting tools to over 5,000 distributor customers
in construction and industrial end markets. The Company’s products
include an extensive offering of proprietary, exclusive, and national
branded products with over 18,000 SKUs across multiple price points and
applications.

“We are really looking forward to partnering with Dan and the Pearlman
team,” said Clay Hunter, managing director at The Stephens Group. “The
GranQuartz and Pearl Abrasive brands are synonymous with quality,
service and innovation, and as a result, they are clear market leaders
with devoted and diverse customer bases. We are committed to supporting
the continued growth of the business as it further penetrates its
existing markets, enters new markets and introduces new products. We
couldn’t be more pleased to have the Pearlman team as part of our family
and we look forward to helping them take this first-class organization
to new levels of excellence.”

“We are extremely optimistic about the opportunities presented to us by
this investment by The Stephens Group,” said Dan Davidenko, Pearlman’s
chief executive officer. “They know our industry extremely well, they
have a focus on industrial distribution, and they understand how to help
companies grow. Because The Stephens Group is not a private equity fund,
their permanent and patient capital base allows them to focus on the
very long-term and make decisions, at all times, that are in the best
interests of Pearlman’s employees, customers and supplier partners. We
will be working closely with their team as we continue our efforts to be
the most trusted and respected company in the industry.”

ABOUT THE STEPHENS GROUP, LLC

The
Stephens Group is a private, family-owned firm investing its capital
in companies with exceptional management teams and high returns on
invested capital in growing industries. The Stephens Group has a long
history of successfully investing in both minority and control positions
across multiple industries. Through its affiliates, The Stephens Group
has or has had significant positions in consumer and specialty retail,
distribution, industrial products and services, healthcare, telecom,
media and technology, communications, energy services and gas
exploration and production and other industries.